A South Korean court has temporarily lifted a three-month ban on crypto exchange Upbit, which prohibited the platform from servicing new clients. This decision follows Upbit's parent company, Dunamu, filing a lawsuit against the Financial Intelligence Unit (FIU) over the suspension that was initially imposed due to violations involving unregistered virtual asset service providers. The court granted an injunction allowing Upbit to serve new clients while the legal proceedings unfold. The FIU's suspension was part of a larger investigation concerning Upbit's compliance with financial regulations, including anti-monopoly laws and Know Your Customer (KYC) rules. The exchange had reportedly facilitated numerous transactions with unregistered foreign exchanges, prompting increased regulatory scrutiny and oversight of cross-border crypto transactions in South Korea. This development is part of the government’s efforts to enhance monitoring of crypto activities to prevent tax evasion and currency manipulation.

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